The «Ukrmetallurgprom» Association has appealed to the Prime Minister to include metal products in the pilot scheme for priority transport. The draft Cabinet of Ministers resolution provides for priority transit of fuel and vegetable oil by rail, through ports and at border crossings. The industry warns that excluding these goods could complicate exports and reduce foreign exchange earnings.
Briefly about the main points
- Steelmakers are asking for steel to be included in the government’s pilot scheme for priority transport.
- The project prioritises logistics for fuel and vegetable oil.
- The sector estimates its contribution to Ukraine’s GDP at 5.5% for 2025.
- The cost of transporting raw materials has risen from $30 to $68 per tonne of output.
- The Cabinet of Ministers has not yet approved the final list of priority goods.
The sector believes it meets the criteria set out in the government’s draft
The President of «Ukrmetallurgprom» Oleksandr Kalenkov It announced on 19 October that the priority given to certain goods under the scheme is due to their high added value and their ability to generate foreign exchange earnings. The association believes that metal products also meet these criteria.
Steelmakers support giving priority to fuel, particularly in the run-up to the heating season. At the same time, Kalenkov described as puzzling the inclusion of vegetable oil in the second item of the list, given the absence of steel products.
The association is calling for steel to be granted the same conditions of access to rail logistics, port infrastructure and border crossing points. It is via these routes that products are delivered to overseas buyers.
The metallurgical industry justifies its demand by citing taxes, exports and a decline in production
According to estimates by «Ukrmetallurgprom», the mining and metallurgical sector accounted for approximately 5.5% of Ukraine’s gross domestic product in 2025. The association estimates the sector’s tax payments at 150 billion hryvnias, and foreign exchange earnings from exports at $6 billion.
Between January and September 2026, Ukraine produced 4.43 million tonnes of steel and 3.73 million tonnes of rolled steel. Both figures are lower than those for the corresponding period last year, the association reported.
Businesses are suffering losses due to Russian shelling, problems with energy supplies and disruptions to logistics routes. According to industry representatives, prioritising the transit of goods could help to safeguard export contracts and keep production facilities operational.
Maritime restrictions are diverting exports to the western border and the Danube
Since July, companies’ ability to export metallurgical products via seaports has effectively been restricted, Mr Kalenkov stated. The main routes for deliveries to foreign buyers remain the western rail crossings and the Danube route.
According to the association’s estimates, the cost of transporting raw materials has risen from $30 to $68 per tonne of finished product. Delays at the border and higher logistics costs are making it harder for Ukrainian steel to compete in the European market, where relatively fast delivery had been a key advantage for producers.
As of 19 October, the Cabinet of Ministers’ document has the status of a draft resolution. No decision has yet been made on whether to take the steelmakers’ proposal into account.
